The Federal Government has inaugurated an inter-ministerial committee to develop a new Value Added Tax (VAT) Modification Order as part of efforts to implement Nigeria’s Tax Reform Acts.
The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, announced the development in a statement shared on his X account on Friday.
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According to the minister, the committee has been tasked with producing an updated VAT framework that aligns with the Tax Reform Acts, which came into force on January 1, 2026.
The inauguration took place at the headquarters of the Federal Ministry of Finance in Abuja.
Oyedele described the Tax Reform Acts as the most far-reaching overhaul of Nigeria’s tax system in several decades, noting that the legislation simplifies tax administration, provides greater certainty, strengthens competitiveness, protects vulnerable citizens, and lays the foundation for long-term economic growth.
He explained that the committee’s assignment is not to reproduce the previous VAT Modification Order, which has been replaced by the new tax laws, but to create a modern and comprehensive framework that complements the reforms and supports the country’s economic agenda.
“The objective is to produce a modern, coherent, and forward-looking VAT Modification Order that aligns with the new legislation and advances Nigeria’s economic transformation,” he said.
The committee is expected to examine the current VAT administration framework, identify areas requiring clarification, prepare a new VAT Modification Order, and recommend amendments to existing laws where necessary.
It will also engage stakeholders from both the public and private sectors to validate VAT classifications and ensure they are consistent with national economic and social priorities. In addition, the committee will compile updated lists of VAT-exempt and zero-rated goods and services, taking into account revenue implications and Nigeria’s international obligations.
Oyedele said the committee’s work would be guided by five key principles: strict compliance with the law, support for economic growth, clarity and certainty in tax administration, broad stakeholder consultation, and alignment with international best practices.
He emphasized that the new VAT framework should encourage industrialisation, attract investment, boost exports, promote innovation, strengthen food security, and support the country’s energy transition without compromising the integrity of the VAT system.
The committee has been given six weeks to complete its assignment and submit a draft VAT Modification Order for 2026, schedules of VAT-exempt and zero-rated supplies with their corresponding Harmonised System (HS) codes, implementation guidelines, and a report on stakeholder consultations.
Its membership comprises representatives from the Federal Ministry of Finance, the Nigeria Revenue Service, the Nigeria Customs Service, the Federal Ministry of Industry, Trade and Investment, the Joint Revenue Board, the Manufacturers Association of Nigeria, the Tax Advisory Committee, and the Tax Justice and Governance Platform.
Oyedele said the committee brings together experienced professionals from government institutions and the private sector to ensure the successful delivery of its mandate.
He added that the Tax Reform Acts, which took effect on January 1, 2026, are intended to simplify Nigeria’s tax system, improve the ease of doing business, enhance investor confidence, and drive sustainable economic development.
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